What is the standard material cost per candle______What is the standard labor co

Question

What is the standard material cost per candle______What is the standard labor cost per candle_________What is the standard overhead cost per candle_________How did the production manager do in controlling product costs for the month of March How else can we analyze these differences in b) to better understand what caused them We can isolate the price & quantity variations by comparing actual to standards. To do this need to fill-in answers for questions below: The standard quantity of material per unit is__________The total standard quality of material for the actual units produced is_________What was the actual quantity of material used for total actual units produced__________What is the standard price per unit of material________

Explanation / Answer

(a) Standard Material Cost = $(5 * 7) = $35 per suit

Standard Labor Cost = $ (1 * 12) per suit =$12 per suit

Standard Overhead Cost = $6.30 per suit

(b)

Material Variances: Rate variance = (7 - 7.2) 57000 = $11400 U

Quantity Variance = (59000 - 57000) 7 = $14000 F

Labour Variances: Rate Variance = (12 - 11.20) 11200 = $8960 F

Efficiency = (11800 - 11200) 12 = $7200F

Overhead Variance = (6.30 - 8) 11800 = $20060U

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